Trade Deal Progress, Fed Guidance, WTO Ambitions: Eco Day

(Bloomberg) -- Good morning Americas. Here’s the latest news and analysis from Bloomberg Economics to help get you Thursday started:

• China and the U.S. have agreed to have a call soon to discuss the progress of their trade deal
  • The U.S. announced it is suspending its extradition treaty with Hong Kong and ending reciprocal tax treatment, the latest salvo in escalating tensions between Washington and Beijing
• U.S. central bankers backed off in July from a readiness to set a clearer bar for raising interest rates, a step that would underscore their commitment to an extended period of ultra-loose policy
• Urban exiles are fueling a suburban housing boom across the U.S. But how long will it last?
• U.S. states and metros are skimping on infrastructure spending as the coronavirus pandemic guts budgets
• The Mexican economist who helped negotiate a trade deal with the U.S. and Canada has plenty of experience on paper to win the race to lead the World Trade Organization. He also faces some vexing political obstacles
• Major central bank decided jointly to reduce the frequency of operations to provide markets with dollars, judging that emergency steps introduced to avoid a liquidity crunch at the height of the pandemic are no longer needed
• Brazil and Argentina have promised to work together to iron out key trade issues as South America’s two largest economies struggle to recover from the pandemic
• European workers may be about to get another batch of bad news after a summer of job cuts and with the economic recovery threatened by fresh virus outbreaks and localized lockdowns

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